Accenture scraps dedicated diversity & inclusion programs worldwide
Global technology consulting giant Accenture has axed its diversity & inclusion program, with chief executive Julie Sweet citing the evolving political landscape in the US in a memo to staff.
Accenture, which is domiciled in Ireland for tax purposes but listed on the New York Stock Exchange, has a global workforce in the region of 800,000 employees, with approximately 6,500 of those stationed in Australia.
The memo from Sweet said Accenture would sunset the diversity targets it first established in 2017 and updated after her appointment as CEO, as well as end career development programs for “people of specific demographic groups”.
“We are and always have been a meritocracy,” Sweet declared, while adding that the firm’s diversity targets had already been largely achieved, including a 30 percent ratio of female managing directors. “We are and always have been committed to an inclusive, merit-based workplace free from bias, and a culture in which all our people are respected and have equal opportunity.”
At stake, of course, is hundreds of millions worth of US federal contracts, with Sweet stating the decision to ditch its diversity & inclusion program was a result of “the evolving landscape in the United States, including recent executive orders with which the firm must comply." Those orders include a mandate that federal contractors and grant recipients mustn’t conduct certain DEI initiatives.
“We have used this moment to reflect on how best to move forward and be an even stronger company, making updates that allow us to be an even better employer for all our people and even more successful,” Sweet said. “As a result, we are evolving our policies and practices globally, and not just in the US, subject to local laws and tailored to the needs of our markets.”
Australia
In addition to scrapping targets, the firm will reevaluate its external partnerships and put a hold on submitting employee data to diversity bench-marking surveys – although, by law, Accenture would still be required to report to Australia’s Workplace Gender Equality Agency (WGEA), and may possibly be made to comply with targets in the future according to potential new legislation.
Only recently, Accenture became one of the founding partners to adopt a new set of diversity & inclusion standards endorsed by the Tech Council of Australia, and has been classed as a ‘platinum employer’ by the Australian LGBTQ Inclusion Awards. In 2022, the firm released its initial two-year ‘Innovate’ Reconciliation Action Plan, the second phase of four in the RAP program.
Among its RAP commitments, the firm aimed to develop and implement a First Nations recruitment, retention and professional development strategy, increase the percentage of First Nations employees in its workforce, actively provide employment and upskilling opportunities and set targets for Indigenous recruitment, and incorporate the changes into policies and KPI’s.
“Accenture’s position affords us both an extraordinary opportunity and a huge responsibility to make a difference,” A/NZ chief executive Peter Burns said at the time. “We have a strong Australian heritage that drives us to both celebrate the contributions of First Nations peoples and to try to address the longstanding inequities that have persisted in this country across generations.”
It’s hard not to feel at least a little bit gas-lit by Accenture’s reversal, as the consultancy, led by Sweet, has been among the most vocal proponents of workplace diversity, including as recently as in the staff memo; “We have always believed that attracting, hiring and developing people who have different backgrounds, perspectives and experiences is essential to driving innovation.”
